Some believe that Bob Lutz, a current GM vice chairman who has served with all three Detroit automakers will be picked as CEO. Mr. Lutz, a former jet fighter pilot, will take over for Mr. Henderson at tomorrow's LA Auto Show keynote address. (Source: Detroit News)

So what went wrong? Industry insiders in Detroit say that while the previous GM CEO, Rick Wagoner, was given nearly unlimited freedom before the bankruptcy, the government and board essentially strangled Mr. Henderson with too tight a leash.

The board (and U.S. government) became disenchanted with Mr. Henderson as he appointed GM insiders to pivotal executive positions, declining to bring in fresh blood. Mr. Henderson blamed pending government curbs on executive pay. He received more flak over a poorly received ad campaign featuring GM board chairman Ed Whitacre and an abruptly canceled eBay sales experiment.

Most recently the ceiling really caved in when GM's deals to sell Saturn and Swedish-based Saab collapsed. While both GM and the buyer share the blame in both of these failures, GM's inability to provide the buyer with enough resources was reportedly a common complaint between both ex-buyers.

Ed Whitacre, a former AT&T Inc CEO and current GM board chairman, announced Mr. Henderson's departure at a hasty press conference in Detroit. Describes Mr. Whitacre, "Fritz has done a remarkable job leading the company through an unprecedented period of challenge and change. While momentum has been building over the past several months, all involved agree that changes need to be made."

Mr. Whitacre, 68 years old, says that he will serve as GM's interim CEO until a more permanent replacement is found. He refused to answer questions from journalists at his press event, but said that business would continue "as normal" at the automaker. Mr. Whitacre is infamous for his quote, "I don't know anything about cars."

Mr. Henderson's daughter, Sarah Henderson, reportedly released a Facebook rant after the announcement according to the auto blog site Jalopnik. The authenticity of Ms. Henderson's comments has not been confirmed.

The job search will likely be complicated by the fact that pay for the position has been restricted by the Obama administration's so-called "compensation czar", Kenneth Feinberg. According to Mr. Whitacre, the government played no direct role in Mr. Henderson's decision to step down.

One possible executive candidate is current Vice Chairman Bob Lutz. While certainly an industry insider, Mr. Lutz has spent time at all three Detroit automakers and thus isn't considered old blood. He's known for his vocal and blunt style that has at times run him into trouble, but has also earned him many fans. Mr. Lutz will step in for Mr. Henderson tomorrow at GM's LA Auto Show keynote address. Richard Change, an automotive journalist with The New York Timessuggests that the signs may point to the selection of "Maximum Bob" as the new GM CEO.

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